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China property firms buy Hong Kong land piece for record price

Two mainland Chinese property companies snapped up a piece of Hong Kong residential land at a record-breaking price on Friday, highlighting once again the territory's skyrocketing real estate prices.

PHOTO: REUTERS

[HONG KONG] Two mainland Chinese property companies snapped up a piece of Hong Kong residential land at a record-breaking price on Friday, highlighting once again the territory's skyrocketing real estate prices.

Moreover, it has deterred some major local players, including Hang Lung Properties and Hopewell Holdings , from bidding for land.

A top government official said on Thursday that competition from Chinese developers is not an issue as Hong Kong is a free market that welcomes competition from abroad.

"It does not matter where the capital is from. The most important thing is they are investing in Hong Kong, and they are here to build homes for Hong Kong people," said Secretary for Development Ma Siu Cheung.

This marked the first time Logan Property, ranked 32nd largest in China, and KWG Property successfully bought land in the former British colony. The companies said in a joint press release the plot of land, offering a panoramic view of the ocean in southern Hong Kong island, is a "rarity".